China’s financial and security authorities have reinvigorated cooperation to curb a recent surge in activity related to digital asset trading, a market that will be banned in the country from 2021, according to a Nov. 29 statement from the People’s Bank of China (People’s Bank of China).
As Bitcoin miner hashrate increases, regulatory push puts state control frameworks under strain again Those operating from Chinese territory As reported by CriptoNoticias, it passes through structures that are difficult to track.
In this framework, the People’s Bank of China led meetings with numerous state institutions. Looking back at the recent uptrend Activities related to trading or speculation in crypto assets.
As stipulated, representatives from the Ministry of Public Security, judicial authorities, financial regulatory bodies and technical supervisory bodies participated. These are all part of an interagency mechanism created to monitor digital operations that the state deems risky.
The meeting took place under regulations issued in 2021, in which China classifies the trading of crypto assets as “illegal financial activities” and bans not only mining but also the operation of exchange platforms.
At the time, governments sought to avoid capital outflows and reduce the use of digital tools. Challenging state control About the monetary system.
Despite these measures, various unofficial operations have resurfaced in recent months, the People’s Bank of China’s document said. This increase would have motivated an intensification of surveillance missions.
The authorities once again emphasized that: There is no legal tender for crypto assets in China. And they cannot be used as currency. At the same time, it warned that stablecoins also do not comply with user identification standards and anti-money laundering regulations.
For authorities, this combination increases the risk of fraud, illicit financing and unauthorized cross-border movement.
Paradoxical situation: formal ban and increase in mining activities
Despite the ban, China continues to appear in international measurements of Bitcoin-related activity. The computing power provided by miners in Chinese territory has increased again.
China banned mining in 2021, but this is different The operators would have found a way to continue illegally.
This contrast may be behind why authorities are reinforcing their regulatory messages. Although mining activities do not involve direct trading of assets, they can generate income in Bitcoin and circulate it through channels that are difficult to monitor.
Official concerns focus on these capital flows and the eventual use of crypto assets to circumvent financial regulations.
China’s framework has no plans to be flexible
The People’s Bank of China’s statement emphasizes that the country will maintain its prohibitive stance. A line imposed by Chinese leader Xi Jinping himself.
Current regulation is based on a vision in which financial stability is a strategic objective and central to state control over the issuance, circulation and supervision of currency.
This scheme poses a risk because crypto assets can be operated without intermediaries and with a level of anonymity that reduces monitoring capabilities.
The new adjustment signal confirms that China does not foresee a change in approach. On the other hand, sustained mining activity and demand for assets like Bitcoin indicate continued economic interest in these technologies, even as regulatory frameworks seek to limit them.